The first step in buying a house is
determining your budget. This calculator helps you
through the process of finding out how much you can
borrow. To [ CALCULATE ]
your needs, first fill in the entry fields

When done click on the payment
schedule [ REPORT ]
button to see a complete amortization schedule of your
mortgage payments.

Your annual income. For married
couples this is your total combined annual income.

Purchase price

The price of the home you wish to
purchase. This is the actual price you'll pay, not
including any closing costs.

Total monthly payment

Total monthly payment that you can
qualify for. This is the total of principal, interest,
taxes and insurance paid each month. Often called PITI.

Cash on hand

Cash you have for the down payment
and all closing costs.

Interest rate

The current interest rate you can
receive on your mortgage.

Term in years

The number of years over which you
will repay this loan. The most common mortgage terms
are 15 years and 30 years.

Property tax rate

Your property tax rate. 1% for a
$100,000 home equals $1,000 per year in property
taxes.

Home insurance rate

Your homeowner's insurance rate. 0.5%
for a $100,000 home equals $500 per in for homeowner's
insurance.

Monthly car payment(s)

Total monthly payment for your car
loan(s).

Credit card payments

Total monthly minimum payments for
your credit cards.

Other loan payments

Any other installment loan payments,
such as student loans or unsecured loans.

Total closing costs

Total up front costs to close your
loan. This is the total of your loan origination fee,
points paid and other closing costs.

Loan origination rate

The percentage the lending
institution charges for its origination fee. 1% for a
$100,000 home equals $1,000.

Number of points paid

The total number of points paid to
reduce the interest rate of your mortgage. Each point
costs 1% of your mortgage balance.

Other closing costs

Estimate of all other closing costs
for this loan. This should include filing fees,
appraiser fees and any other misc. fees paid.

Monthly PMI payment

Monthly cost of Principal Mortgage
insurance (PMI). For loans secured with less than 20%
down, PMI is estimated at 0.5% of your loan balance
each year. Monthly PMI is calculated by multiplying
your starting loan balance by this percent and
dividing by 12. When your loan balance exceeds 20% of
the original purchase price, your PMI payment drops to
zero.

Monthly PI payment

Monthly principal and interest
payment.

Total for down payment

Total funds remaining, after closing
costs, for down payment.

Limit down payment to 20%

Limit down payment to 20% of the
purchase price. Even if you have more cash on hand
than required for closing costs and a 20% down
payment.

Show schedule by month

Display the payment schedule by month
when you press the Payment Schedule button.

Show schedule by year

Display the payment schedule by year
when you press the Payment Schedule button.

Total debt percent of annual
income

Not shown. This is the percent of
your annual income your financial institution allows
you to use for installment payments debt. This
includes car payments, credit card payments, other
loan payments and your "Principal, Interest, Tax
and Insurance" payment for your home. The default
rate is 36%.

PITI percent of annual income

Not shown. This is the percent of
your annual income your financial institution allows
you to use for your "Principal, Interest, Tax and
Insurance" payment for your home. The default
rate is 28%.

Qualify amount

Shown as "Total monthly
payment." This is the total amount you qualify
for per month. This amount is the total of
"Principal, Interest, Tax and Insurance" for
your home.